PVR’s Ajay Bijli gets show cause notice from Sebi, shares tumble

Shares of the company were trading 0.37 per cent down at Rs 1,085.50 in late afternoon trade. The scrip opened the day at Rs 1,089.15 and touched a high of Rs 1,115.10 and low of Rs 1,074, in trade so far.NEW DELHI: Shares of multiplex operator PVR wiped off their initial gains after the company informed bourses that its chairman and managing director Ajay Bijli has received a show cause notice from the markets regulator Securities and Exchange Board of India (Sebi).

Shares of the company were trading 0.37 per cent down at Rs 1,085.50 in late afternoon trade. The scrip opened the day at Rs 1,089.15 and touched a high of Rs 1,115.10 and low of Rs 1,074, in trade so far.

In a BSE filing, the company said, “Ajay Bijli has received a show cause notice dated November 22, 2016 from the Securities and Exchange Board of India in relation to (i) alleged violations committed by Ajay Bijli of Clause 49D of the erstwhile Listing Agreement and corresponding Regulation 17(5) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”); and (ii) alleged violations committed by the company of Clause 36 of the erstwhile Listing Agreement and corresponding Regulation 30 of LODR.”

The company added that it is reviewing the notice and is in the process of seeking legal advice to take appropriate action in the said matter.

For the quarter ended September 30, 2016, PVR reported a consolidated net profit of Rs 29.13 crore, down 5 per cent as against Rs 30.64 crore in the corresponding quarter last year. Net sales had jumped 16.26 per cent on a year-on-year basis to Rs 541.01 crore.

On a year-to-date basis, shares of the company have surged nearly 36 per cent to Rs 1,089.55 till Tuesday.

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